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Microsoft Cloud Authors: Jordan Sanders, Carmen Gonzalez, Pat Romanski, Keith Mayer, Jayaram Krishnaswamy

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TAGSYS Transforms RFID Compliance Mandate into Profitable Business Process with Unique Item-Level Inventory Management System

TAGSYS RFID, the leading provider of item-level inventory management systems that streamline the supply chain, is helping both internal and third-party distribution centers (DCs) and their customers who are servicing retail stores to significantly improve the efficiency of goods handling with its comprehensive FiTS (fashion item tracking system) item-level RFID system. By enabling new levels of productivity and efficiency improvements, businesses can achieve bottom-line impact, through up to 50% reduction in handling costs, accelerated throughput of items from manufacturing to point of sale, and more efficient utilization of physical space.

In addition, with RFID compliance mandates facing brands and suppliers who target the US retail market, TAGSYS provides a fast track approach to meet large American retailers’ requirements. The efficiencies can be quickly realized either directly through TAGSYS-powered internal DC operations or through low-risk partnerships with third-party logistics partners that have already invested in TAGSYS systems, saving both time and capital outlay. The net result is the TAGSYS system transforms the compliance mandate from a required capital expense into a profit-increasing business enhancement.

Regardless of the approach, the TAGSYS system delivers unmatched visibility in the supply chain, and complete interoperability with existing business process systems and legacy inventory management technologies.

“Companies are concerned with the investment required to meet retailers’ RFID compliance mandates. TAGSYS is uniquely positioned to turn that investment into a positive bottom line experience with a rapid ROI. There are several key opportunities to improve efficiencies which our item-level system addresses – streamlining the flow of goods throughout the logistics process, improving accuracy and visibility of items, eliminating unnecessary overhead, and even ensuring optimal use of space. All of this adds up to significant bottom line value that more than justifies the initial investment needed to comply with RFID requirements,” said Alain Fanet, CEO of TAGSYS.

TAGSYS’ FiTS solution is the RFID industry’s first commercial off-the-shelf, end-to-end supply chain system for the apparel and retail marketplaces. Leveraging RFID technology to provide visibility from manufacturing, through the distribution center, and to the retail floor, the system includes patented RFID technologies, equipment, and software to address the complete supply chain.

Rapid ROI with RFID

The TAGSYS system directly addresses the challenges of inventory management in distribution centers. Its customer have seen up to 50% reduction in overall costs thanks to significantly more efficient check-in and check out processes enabled by its unique item-level capabilities. In addition, the high throughput allowed by its systems enables DCs to do more with less overhead. Highly efficient item-level tracking improves labor productivity and helps eliminate inventory errors and loss with near 100% visibility, further driving down operations costs. For example, customers have seen up to 70% savings in the labor costs involved with shipment inspections, absorbing even peak period volumes with little to no staffing changes required.

The TAGSYS system also helps DCs use their physical space more efficiently, buy optimizing the space they have and avoiding having excess or unneeded inventory in stock. This translates into savings in rent and/or real estate requirements.

Fast track to RFID compliance

Current market estimates indicate that more than 50 brands are under RFID compliance requests from their retail partners. The TAGSYS FiTS solution enables suppliers and brands to be compliant with RFID guidelines backed by some of the largest retailers in the US. Whether the RFID deployment is done internally at a company's own DC, or outsourced in low-cost, low-risk model to third-party logistics companies, the compliance mandate can be met quickly and easily with the TAGSYS system. The TAGSYS system also ensures interoperability with existing business process and information systems, allowing efficient integration and scalability.


TAGSYS RFID is transforming the way to connect, communicate and interact with goods. We provide item-level inventory management systems that streamline the supply chain. This enables companies to control pricing strategies, increase sales and improve customer satisfaction. For more than 15 years, TAGSYS has established a proven track record in deploying RFID systems in demanding environments. We have implemented RFID-based systems to more than 500 customers in 40 countries. TAGSYS leads the industry with the largest R&D investment to expand the potential of RFID. More information on TAGSYS can be found at

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